The rising disposable income, growing automotive industry, increasing exposure to the digital world, and smartphone proliferation with technical advancements are driving the global microcontroller market growth. It generated a revenue of $16,733.2 million in 2015, and it is expected to advance at a 6.9% CAGR during the forecast period (2016–2022), garnering $26,468.2 million by 2022.
A solitary chip microcomputer attached to a single integrated circuit of very-large-scale integration (VLSI) fabrication is referred to as a microcontroller and commonly abbreviated as MCU. It consists of a processor core, memory, and programable input.
The microcontroller market is experiencing prosperity due to the fast-growing automotive industry, which is undergoing a revolution in terms of the inclusion of advanced technology in automotive systems. The focus of the industry has now shifted toward equipping automobiles with futuristic features, such as interactive safety systems, vehicle connectivity, and self-driving technology, which is expected to be the trend during the forecast period. This, in turn, would supplement the demand for microcontrollers, thereby driving their market.
The microcontroller market is observing the trend of declining usage of 4/8-bit microcontrollers, which is expected to continue throughout the forecast period. This is due to the inefficiency of the conventional processors on which these microcontrollers run.
Furthermore, these 4/8-bit microcontrollers function on old architectures, which results in their reduced performance; they even have a low limit on supported memory storage. Owing to the disadvantages of these microcontrollers, they are soon to be replaced by 16-bit and 32-bit microcontrollers.
Hence, as car and smartphones sales boom in APAC, the market for microcontrollers would also grow.